SA has a capital holding in the following companies: CSA Airtours a.s., Amadeus Marketing CSA s.r.o., Slovak Air Services s.r.o., CSA Services s.r.o., CSA Support s.r.o., Slovenská Konzultacna Firma s.r.o. and Boeing Ceska s.r.o.

CSA Airtours a.s., was founded on 1 January 1995 and CSA is the sole owner. A travel agency, it was established to develop activities in the field of tourism, focused significantly on travel agency services for the foreign clientele of CSA, and for organising tours for those domestic customers that use CSA as their main carrier.

The economic results achieved by CSA Airtours in 1998, reflected the generally low demand for the services of travel agencies in the Czech Republic and also changes in the exchange rate of the Czech crown, which caused significant exchange rate losses for the company. Despite the negative result, the agency was one of the top ticket-sellers in the Czech Republic in 1998.

Amadeus Marketing CSA s.r.o., is a CSA subsidiary founded on 1 July 1993. It provides the global distribution system AMADEUS for ticket sales and reservations, accommodation, car rentals and other services in the Czech and Slovak Republics. As of 31 December 1998, the company recorded 214 agencies using the AMADEUS system which is about 44 agencies more than in the previous year.

Slovak Air Services s.r.o., has its offices at M. R. Stefanik Airport in Bratislava, Slovakia. The company was founded on 1 July 1994, and CSA is the 100 % owner. Its primary focus is to provide aircraft and passenger and cargo handling services for CSA flights in Bratislava. The monopoly of the Slovak Airport Authority and its tendency to block the activities of this CSA daughter company, reflected negatively on the activities of Slovak Air Services in 1998, as in the previous period. In spite of these negative features, labour productivity increased 8 %, with an 11 % decrease in the number of employees.

CSA was the sole founder of CSA Services s.r.o., established on 29 October 1996. Although this company had to modify its activities in 1998, it succeeded in arranging international training in catering and the establishment of long-term cooperation with "Obecni dum" (the Prague Municipal House) for the provision of catering services. CSA and Czech Railways, continued their preparation for the provision of complex catering services for the 680 "Premier" high-speed trains of Czech Railways, which are to be operated between Vienna, Prague and Berlin.

CSA Support s.r.o., is the youngest offspring of the subsidiary family, founded in July of 1998. It provides the cleaning of CSA offices at Prague-Ruzyne Airport and the cleaning of aircraft for the companies for which CSA provides handling services at the airport.

Slovenska Konzultacna firma s.r.o., was founded in the Slovak Republic, based on a directive to solve the transformation of Slovak Air Services s.r.o.. The intended transformation has not yet been realised and therefore, the company has not been activated. The beginning of its activity is expected in the second quarter of 1999, and it is expected to provide services in the area of travel and the training of travel agencies in the Slovak Republic.

In 1998, CSA also obtained a 10 % share in Boeing Ceska s.r.o., which owns 35 % of the shares in Aero Vodochody. Aero Vodochody produces light fighters and training aircraft and is the successor to the original Aero company, which was founded in Prague in 1919. The participation of CSA in Boeing Ceska, results from the assistance CSA provided to The Boeing Company (USA) in the process of its movement into Aero Vodochody as a strategic partner.

SHARE CSA A.S. EQUITY* REGISTERED CAPITAL* REVENUES* ECONOMIC RESULT* CSA Airtours a.s. 100% 1 631 CZK 1 000 CZK 57 078 CZK -923 CZK Slovak Air Services s.r.o. 100% 9 388 SSK 200 SSK 37 635 SSK 492 SSK Amadeus Marketing CSA s.r.o. 65% 37 658 CZK 585 CZK 65 845 CZK 21 397 CZK CSA Services s.r.o. 100% 170 CZK 100 CZK 4 909 CZK 169 CZK CSA Support s.r.o. 100% 162 CZK 100 CZK 24 582 CZK 62 CZK * in thousands